Benzinga Bulls and Bears: SpaceX, Meta, Netflix
Key takeaways
- Meta’s earnings beat is offset by a hefty 2026 cost outlook, while SpaceX’s AI‑driven revenue surge signals robust growth potential.
- Meta revenue $64.6 billion (26% YoY)
- Meta adjusted EPS $7.40 (beat $5.74)
- Meta 2026 expense outlook $175 billion‑$179 billion
What happened
Meta Platforms Inc. (META) reported a third‑quarter revenue of $64.6 billion, up 26% YoY, and adjusted earnings of $7.40 per share, beating estimates of $63.37 billion and $5.74 respectively. The company also raised its 2026 expense outlook to $175 billion‑$179 billion and projected capital spending of $135 billion‑$145 billion, while noting a $9.9 billion legal charge. SpaceX (SPCX) delivered a Q3 revenue of $14.58 billion, up 161% YoY, and earnings of $0.35 per share, surpassing expectations…
Why it matters
Meta’s higher-than‑expected earnings and revenue reinforce its AI‑driven growth narrative, but the steep 2026 expense and cap‑ex outlook signals significant future spending that could pressure margins. SpaceX’s revenue surge, driven largely by AI infrastructure, highlights the company’s expanding role in the AI…
Short-term and longer-term
Short-term. Over the next few days, Meta’s stock could react to the high 2026 cost outlook; a sharp decline would suggest margin concerns, while a rally might indicate confidence in AI upside.
Longer-term. For the coming months, Meta’s aggressive AI spending could either pay off through higher ad revenue or strain profitability if costs outpace returns.